Before starting any business, it is important to write a realistic, detailed business plan that…
Need to Write a Business Plan
Is there always a need to write a business plan for a startup or expansion? The answer is an unequivocal: Yes! The process of business plan development walks the entrepreneur through the steps of starting and operating a business and encourages sound financial planning. However, the document also needs to be professionally written and well-organized to add clarity and to attract potential investors. This is a major reason why people will choose to hire a professional business plan development and writing consultant or consulting team with experience across industries.
How to write a business plan?
The process of business plan development is the same for a small business as it is for a large one. The type of investor may be different though. Small startups are often looking for angel investors or small business loans, while corporations ready to expand may focus on attracting venture capital, equity funding, or bank loans. No matter what type of investor is sought, the need to write a business plan stays the same across industries because it is much more than a fund raising document.
- Forces the business owner or manager to first consider the business from a broad perspective, making it easier to write an executive summary and develop a cohesive document
- Ensures each critical planning step is considered, including writing a mission or vision statement, preparing an operating plan, considering management team experience and skills needs, developing a marketing plan, and putting together projected profit-and-loss and balance sheet statements that make sense.
- Leads to the identification of the value proposition the business is offering the marketplace
- Highlights inconsistencies during planning, like matching required staffing levels to production plans, and can lead to the adoption of additional or revised strategies that strengthen the business plan, i.e. partnerships to add capacity or fill competency gaps, changing distribution channels, pricing revisions, and so on
- Encourages in-depth research on competitors and targeted market to ensure there really is a need for the new products and services
The business plan is not a document that is developed once and then put away. Once the business is up and running or expansion plans are in process, it can help recruit quality talent, serve as a guide for decision-making, lead to frequent reassessment of performance goals versus actual results, and provide a basis for responding to unexpected changes like the entrance of new competitors into the market.
Unfortunately, many great business ideas are rejected by investors because the business plan lacks formality, cohesiveness, and realistic goals. The plan needs to be well-researched, well-written and convincing. Having a great idea is not the same as turning the idea into a realistic plan for success.
OGS Capital consultants have worked with thousands of entrepreneurs and business leaders over the decades who recognized the importance of solid business planning. The need to write a business plan is stronger than ever as competition intensifies. Contacting OGS Capital professionals is as simple as completing the online form at your convenience.